MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘regulations’

Why the Free Market Is Hard to Defend

Posted by M. C. on August 29, 2024

The free market exists because of something no one likes to be reminded of: scarcity.

As Hayek showed, government control over the means to human flourishing leads inevitably to government control over the ends of human flourishing.

Nathan W. Schlueter

Under steady pressure from post-liberal and populist voices, Republican party leadership seems to have taken a surprising turn against the free market and towards interventionist policies—protectionism, industrial policy, regulations, welfare, and labor unions—more traditionally associated with the Left than the Right.

The truth is that the free market is not easy to defend. That is not to say it is indefensible. To the contrary, there are many strong arguments in favor of it, including the scope it gives to human freedom and creativity; the innovation and wealth it generates; and the incompetence, injustice, and dangers of undue government interference and control.

But most people find it difficult to understand and appreciate these arguments when faced with the immediate advantages of government intervention. The problem is not logical, it is psychological. Instead of an explicit rejection of the free market, we have witnessed the steady growth of well-intentioned anti-market attitudes and policies, which cause real but hidden harm while nudging us along what F. A. Hayek famously called The Road to Serfdom.

We can see why the defense of the free market is so difficult and yet so important by juxtaposing it with other domains of human action. The common good of a healthy political association is not simple. It includes at least three spheres that exist in a dynamic and uneasy tension with one another: civil society, the free market, and government.

This seemingly clear division can be very misleading, since all of these spheres, and their corresponding activities and habits, overlap and intersect in ways that are difficult to distinguish. Each sphere has its own distinctive purpose, activity, and “logic” or mode of practical reasoning. And one consequence of this complex reality is that human beings must learn, and learn to apply, different standards of evaluation and behavior to different domains in their lives.

Put most simply, civil society is the sphere where persons pursue the “intrinsic” goods—goods we have reason to want for their own sake—that constitute happiness and flourishing. Civil society is the space of genuine leisure; not merely entertainment, but worship, marriage, family, friendship, and culture. It operates by a “logic” of generosity, commitment, caregiving, and charity.

The free market is the sphere of “instrumental goods”—goods such as money that we only have reason to pursue for the sake of other goods—where persons acquire the means for their flourishing by exchanging their time, labor, resources, and other instrumental goods. It operates by a “logic” of negotiation, calculation, and thrift.

Finally, government is the sphere that provides the overall framework within which the other two spheres can operate well. Government also helps prevent encroachments by the other spheres and provides goods that are difficult or impossible for the other spheres to provide. Government operates by a “logic” of common deliberation and collective action on behalf of the common good, backed by coercive power. 

Each of these spheres provides something distinctive that cannot be provided by the others. Left alone and in isolation from the others, each is prone to expand beyond its due limits, harming people and the common good. The challenge is to make all three work together and correct one another in the way that best promotes human flourishing. The constant ideological temptation is to reduce them to one. Totalitarian ideologies such as communism and fascism attempt to absorb civil society and the market into government. Libertarianism tends to reduce government and civil society to the logic of the market. More subtly, theocracy seeks to subordinate both government and the market to a unified vision of civil society determined by religious authority and doctrine. 

Of these three spheres, the free market is the most difficult to defend. And that difficulty is not simply the result of market excesses or externalities, like manipulative advertising, a surplus of cheap, ugly products, or pollution. The difficulty is intrinsic to even a healthy market. The reasons have to do with scarcity, utility, impersonality, self-interest, and complexity. These words typically cause a negative emotional reaction. Yet each word expresses a reality we rely upon every day, and which we must humbly acknowledge and accept in order to flourish.

First, the free market exists because of something no one likes to be reminded of: Scarcity. Human beings are very needy. Nature does not spontaneously provide food, clothing, and shelter, much less the time or instruments of leisure like books and musical instruments.

Second, the primary advantage of the free market is its usefulness in helping overcome scarcity. We all like and need useful things, but as Aristotle repeatedly observes in his Nicomachean Ethics, the useful is not beautiful. Beauty consists in a gratuitous overflow of being that attracts our wonder and admiration, whereas the useful is merely necessary.

True, the market unleashes astonishing creativity and energy. Ayn Rand is a mediocre novelist, but her romantic entrepreneurs remind us of the kinds of human greatness that can find a place in the free market, and of the gratitude we should have for their efforts. Still, in the end, for most people, the market is about “getting and spending,” in which all too often “we lay waste our powers.” 

Third, the logic of the free market is impersonal. If the first two elements did not elicit immediate negative reactions, this one is sure to do so.

See the rest here

Be seeing you

Posted in Uncategorized | Tagged: , , , , , , | Leave a Comment »

Doug Casey on the Relentless Rise of Taxes, Regulations, and Inflation

Posted by M. C. on May 21, 2024

Like all living creatures, the prime directive of the State is to survive and grow. But the State is unique. The State, as Mao said, comes out of the barrel of a gun. Since it’s based on coercion, it’s only natural that some form of socialism would be its preferred way to organize society. Currency inflation, income taxes, and debt have enabled governments to get completely out of control. The prognosis is not good.

The WEF wasn’t kidding when they promoted the concept that “You’ll own nothing, and be happy”. Well, at least the elite will be happy.

by Doug Casey

International Man: Almost every government worldwide is moving to increase taxes and regulations on its citizens while at the same time engaging in ever-increasing currency debasement.

What do you think of this trend, and where is it going?

Doug Casey: Higher taxes, more money printing, and more regulations are long-standing trends. The cat first got out of the bag with the French Revolution and the triumph of the Jacobins, who wanted to collectivize French society. They almost succeeded. Not many years later, Karl Marx wrote The Communist Manifesto and Das Capital, letting another feral meme loose into society. The idea that the State was a good thing and should grow is now everywhere.

With the turn of the 20th century, roughly 120 years ago, governments all over the world created central banks and the income tax. They started small but have become behemoths, funding welfare and warfare. Both things are highly destructive. In the 19th century there was no welfare and very few wars, because wars are expensive. Governments were hard-pressed to extract adequate revenue from their populations for fighting.

Like all living creatures, the prime directive of the State is to survive and grow. But the State is unique. The State, as Mao said, comes out of the barrel of a gun. Since it’s based on coercion, it’s only natural that some form of socialism would be its preferred way to organize society. Currency inflation, income taxes, and debt have enabled governments to get completely out of control. The prognosis is not good.

International Man: There seems to be a coordinated effort to increase capital gains taxes.

For example, Canada just announced an increase in the capital gains tax from 50% to 67%. President Biden has proposed increasing the US capital gains tax to 44.6% and adding a tax on unrealized capital gains.

What is going on here?

Doug Casey: The “powers that be” actually want to destroy the middle class. That’s not something they’d say, but it’s apparent that the elite would prefer a society with a small number of themselves supported by a sufficient number of plebs but without a troublesome middle class. They don’t like having to rub shoulders with masses of hoi polloi when they visit St Mark’s Square in Venice or Macchu Pichu in Peru. They want just enough service personnel around to make it an enjoyable experience. They see the middle llass as an enemy and a risk. They agree with Lenin, who said the middle class should be ground between the millstones of taxes and inflation.

These two tax increases you mentioned are harbingers of more to come. That’s guaranteed by the bankruptcy of governments everywhere; they want and need more revenue to maintain the status quo.

Meanwhile, institutions—foundations, pensions, NGOs, and the like—operate tax-free; most taxes don’t directly affect them. That suits the elite just fine because the elite control the institutions, and the institutions increasingly hold most of the middle class’s assets. The middle class and the plebs don’t really own the assets that they have in institutions, except in theory. They’re held at a distance from their money, which is just ephemeral digits on a computer. They certainly don’t control corporate voting to install directors, who in turn hire management. The way things are developing, more and more powerful institutions are controlled by BlackRock types. The elite love to talk democracy, but it’s just a smokescreen.

See the rest here

Be seeing you

Posted in Uncategorized | Tagged: , , , , | Leave a Comment »

COVID-19 Is Forcing Governments to Admit Their Regulations Aren’t Really Necessary | Mises Wire

Posted by M. C. on April 18, 2020

As Tom Rogan reported at the Washington Examiner, one company “had more than 20 pallets of coronavirus-specific medical supplies waiting in a warehouse for five days….At another depot in the south-central United States, this same supplier has had 500,000 level-three or level-four masks sitting in a warehouse for two days now. They expect the FDA delays to continue indefinitely.”

And throughout the country, state and local authorities have issued orders permitting restaurants to offer alcohol with takeout and delivery orders. But even these somewhat small and sensible measures have faced criticism.

A license for carry out! What aspect of this needs regulation?

Paper or plastic containers?

Several states have also moved to suspend their so-called “certificate of need” laws, which require healthcare facilities to receive government approval before establishing or expanding their services.

Translation: Whether those in power are willing to accept the competition.

https://mises.org/wire/covid-19-forcing-governments-admit-their-regulations-arent-really-necessary?utm_source=Mises+Institute+Subscriptions&utm_campaign=852d489dbf-EMAIL_CAMPAIGN_9_21_2018_9_59_COPY_01&utm_medium=email&utm_term=0_8b52b2e1c0-852d489dbf-228343965

It’s no exaggeration to say that most of the blame for the world’s poor response to the coronavirus pandemic can be laid squarely at the feet of politicians and bureaucrats.

Even as it became clear that the virus was becoming increasingly dangerous, politicians around the world were quick to downplay its severity. The Chinese state attempted to silence those trying to broadcast warnings, while American political leaders actually encouraged folks to go out and party in crowded public areas. When coronavirus cases were finally confirmed within the United States, many realized that burdensome regulations were preventing private firms from taking measures to fight the pandemic.

Will those responsible face a reckoning for their massive failures?

Anti-Health Regulations

They certainly ought to. From the very beginning, government regulators got in the way as innovative firms worked to develop an accurate coronavirus test. The government fought hard to make sure that private labs could not offer coronavirus tests at all. In fact, the first positive test in the United States was conducted illegally, as researchers became impatient waiting for the Food and Drug Administration to grant them approval.

Weeks into the crisis and the FDA was still throwing up unnecessary hurdles. Arrogating to itself the power to prohibit all testing conducted without its express permission, the agency slowed progress at the time when detecting the virus was most crucial. “I could have tested over 1,000 patients by now instead of checking boxes,” one frustrated researcher said.

Bureaucratic red tape has also prevented hospitals from getting desperately needed supplies. Current regulations require FDA inspection of medical supplies before they can ship, and with massive new orders flowing in to manufacturers, the inspectors simply can’t keep up. But rather than allowing the market to work by letting hospitals freely order supplies from trusted producers, the FDA has refused to budge on its strict rules.

As Tom Rogan reported at the Washington Examiner, one company “had more than 20 pallets of coronavirus-specific medical supplies waiting in a warehouse for five days….At another depot in the south-central United States, this same supplier has had 500,000 level-three or level-four masks sitting in a warehouse for two days now. They expect the FDA delays to continue indefinitely.”

Moving in the Right Direction

These kinds of stories are more than enough to make one’s blood boil. But, thankfully, there are indications that as the crisis grows the federal government and state governments will be willing to waive their anti-health regulations.

Massachusetts, for example, has granted temporary licenses to nurses who are already licensed in other states. Other states have quickly followed suit. Before the crisis began, only three states had automatically licensed doctors and nurses who held out-of-state licenses: Arizona, Pennsylvania, and Montana, which decided to grant them on a permanent, rather than temporary, basis.

Several states have also moved to suspend their so-called “certificate of need” laws, which require healthcare facilities to receive government approval before establishing or expanding their services. As Vittorio Nastasi at the Reason Foundation writes, “Ample research suggests that CON laws increase costs and reduce access to care by limiting competition and supply.”

Nastasi also notes that some states are loosening their requirements under “scope of practice” laws, which restrict the “range of services medical professionals are permitted to provide.” Often the restrictions make little sense, requiring doctors to perform tasks that could be easily and competently done by a nurse. Relaxing scope of practice laws will go a long way toward making coronavirus testing and treatment more efficient.

Will We See Permanent Deregulation?

Unfortunately, many of these regulatory reforms are temporary. And although all of them should have been enacted before the pandemic began, the pandemic is what has allowed deregulation to be politically possible.

But it may also be the reason that the reforms never become permanent. The vast majority of state governors and federal regulators responsible for the deregulations have justified them, not by any prior commitment to advancing liberty, but by their necessity to counteract the pandemic. Once the coronavirus threat has been sufficiently mitigated, it is highly unlikely that these same politicians and bureaucrats will tolerate “emergency deregulations” becoming the new normal.

Moreover, many regulations exist because they benefit powerful interest groups. Once the emergency has subsided, these groups will argue vociferously in favor of reinstating their favored regulations.

In fact, some of the recent reforms have already received significant pushback. Florida’s attempt to ease its scope of practice laws, for example, was intensely criticized by the Florida Medical Association (FMA). The group has opposed reform for decades despite the fact that its state is one of the most restrictive in the country. The bill passed anyway, though the FMA will probably continue to fight for its repeal.

Nonmedical deregulations are likely to face even more scrutiny once the crisis has passed, particularly those related to food and adult beverages. Governor Abbott of Texas recently waived a curious law which prohibited trucks carrying groceries from also carrying alcohol. Boston is now allowing nearly every restaurant to offer carryout without a license. And throughout the country, state and local authorities have issued orders permitting restaurants to offer alcohol with takeout and delivery orders. But even these somewhat small and sensible measures have faced criticism.

It is, of course, entirely possible that the coronavirus will create a lasting paradigm shift toward more liberty and fewer government controls. Should public outrage at the deadly failures of bureaucracy and petty regulatory prohibitions be loud enough, the pandemic could wind up being the catalyst for the significant institutional reforms for which libertarians have been advocating for years.

But don’t hold your breath.

 

Be seeing you

Posted in Uncategorized | Tagged: , , , , | Leave a Comment »

This is the BIG reason why corporate America has gone woke (plus 4 more) — RT Op-ed

Posted by M. C. on November 18, 2019

https://www.rt.com/op-ed/473576-corporate-america-gone-woke/

Why have the biggest and most profitable American corporations embraced leftist politics, as seen in their woke advertising and social justice activism? Hint: It’s not because they’ve become non-profits and taken up philanthropy.

Judging by the Ted Talks of woke American CEOs, by the woke corporate advertising, and by the public relations campaigns promoting corporate ‘brand activism,’ one might reasonably conclude that the most successful, for-profit corporate giants in America have gone out of the money-making business to become centers of leftist political propaganda. And it’s not only the most woke corporate behemoths that promote leftist political notions. Go to a startup crowdfunding portal and count how many times the word “democratizing” is used to describe the mission of the startups there, or how many startup investments are pitched with the supposedly progressive political outlook of the prospective investor in mind.

What one encounters – from the boardrooms to the storyboards and beyond – is a nauseating, woke-up blend of equal parts Communist Manifesto, social justice handbook, sanctimonious sermon and used car sales pitch.

 

Just why has corporate America gone woke (while not yet broke)? Below, I run-down some of the possible explanations for woke capitalism or corporate leftism – from five to one – with five being the least compelling and one being the most.

5. The bosses are woke themselves. CEOs and other corporate executives went to business schools that weren’t that far away from social science and humanities departments. Business professors became friends with humanities and social science professors, who are notoriously left-leaning. Their leftism rubbed off on the business professors, who then spread it to their students, who went on to run corporate America.

4. To pander to their clients. Corporate leftism pleases the corporate customers with the most disposable income, those between 25 and 54, who likely live on the east and west coasts. This demographic includes millennials, whose politics are notoriously left-leaning. Choosing these “coastal elites” over the deplorables in “flyover states” has been an easy decision. The deplorables have less money anyway and they can go to hell if they don’t like corporate wokeness.

3. Being woke is easier than actually paying workers.  Corporate wokeness acts as a placebo, a substitute for economic concessions by corporations. The statements of woke CEOs, the woke ads, the woke activism – these cost a lot less than higher wages and better benefits for workers, or lower prices for customers. Plus, the dummies seem to fall for it every time.

2. To keep the government wolf from the door. Woke capitalism appeases the political elite, putting corporations in the good favor of liberal lawmakers, in the hopes of favorable treatment from the latter. As liberals, these political operatives are more likely to impose burdensome regulations or to initiate anti-trust legislation that would pose big problems. Why not tell them what they want to hear?

1. Wokeness is itself part of globalist capitalism. Leftist politics are perfectly compatible with and supportive of the agendas of global corporate giants. Global corporations and leftist activists want the very same things:

·       Globalism – or, in Marxist terms, “internationalism” – has always been a goal of the left and it has become a goal of multinational corporations. The latter extend their markets far and wide while the former think it advances the Marxist objective of “workers of the world unite!”

·       Unrestricted immigration: Provides cheap labor for corporations and makes leftists feel politically edgy and morally superior for being anti-racists who welcome everyone – whatever their race, religion, gender or sexual orientation – including Mexican gang members running drugs and children? –  into the country, but not to camp out in their living rooms.

·       Transgenderism or polygenderism, the leading edge of leftist identity politics, is also good for business. It creates new niche markets for corporate products, keeps the workforce divided, and distracts leftists with daily arcana and absurdities.

·       Getting rid of nations, stable gender, the family, Western culture and (why not?) Christianity – the hallmarks of leftist “progress” and avant garde politicking – also advances global corporatist objectives, removing any remaining obstacles to global corporate dominance.

By Michael Rectenwald,

Be seeing you

A Wokester's Nightmare: "The End Of The Era When Anything ...

Posted in Uncategorized | Tagged: , , , , , , | Comments Off on This is the BIG reason why corporate America has gone woke (plus 4 more) — RT Op-ed

How Champions of the Poor Become Tyrants | Mises Wire

Posted by M. C. on September 30, 2018

https://mises.org/wire/how-champions-poor-become-tyrants

In a free society, income and wealth gaps are driven by variations in skill, knowledge, talents, independence, creativity, drive, and willingness to take risks. People who are satisfied with safe and secure occupations — like economics professor, school teacher, nurse, dentist or tax return preparer — expect to have much less wealth and income than risk-taking individuals who successfully capitalize on splendid ideas that result in products and services that benefit all of society. In this system, quantity, quality, and prices are determined by the demand and supply of goods and services.

The diagram below depicts one of many markets. The good or service being exchanged could be homes, X-rays, bank reserves, hours of low-skilled labor needed, tickets to Solo: A Star Wars Story, or, in this case, smartphones. Demand (the blue line) and supply (the red line) meet at the purple point. Assuming a free market system of no taxes, subsidies, price controls, regulations, prohibitions, government ownership, etc., 150 smartphones are produced and sold to 150 consumers at a price of $700.

demand1.png

The blue demand line represents a queue that sorts people according to their willingness to pay. The person with the lowest willingness to pay is at the right end of demand (the blue point). He or she is only willing to pay $200 for a smartphone. The person with the highest willingness to pay is at the left end of demand. He or she is willing to pay up to $1200. Whereas only one smartphone would be sold if the price is $1200, 300 smartphones would be sold at a price of $200. Read the rest of this entry »

Posted in Uncategorized | Tagged: , , , , , | Leave a Comment »